BILL NUMBER: AB 2807	CHAPTERED  08/23/00

	CHAPTER   221
	FILED WITH SECRETARY OF STATE   AUGUST 23, 2000
	APPROVED BY GOVERNOR   AUGUST 21, 2000
	PASSED THE ASSEMBLY   AUGUST 7, 2000
	PASSED THE SENATE   JUNE 29, 2000
	AMENDED IN SENATE   JUNE 12, 2000
	AMENDED IN ASSEMBLY   MAY 8, 2000
	AMENDED IN ASSEMBLY   APRIL 5, 2000

INTRODUCED BY   Assembly Member Papan

                        FEBRUARY 28, 2000

   An act to amend Section 11704.5 of the Vehicle Code, relating to
vehicles.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2807, Papan.  Dealers:  continuing education.
   Existing law requires every person, except as specified, applying
for a dealer license for the purpose of transporting sale of used
vehicles on a retail or wholesale basis only, to take and
successfully complete a written examination and to complete a
preliminary educational program.
   This bill would require the persons described above who are
required to complete the examinations and educational program and who
are thereafter issued a dealer's license every 2 years to
successfully complete an educational program of not less than 4 hours
that offers instruction in specified subjects and topics in order to
maintain or renew that license.  The bill would exempt a dealer from
the requirement to complete the education program if the educational
program is completed by a managerial employee employed by the
dealer.  Because a violation of this provision would be a crime under
existing law, the bill would impose a state-mandated local program
by creating a new crime.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 11704.5 of the Vehicle Code is amended to read:

   11704.5.  (a) Except as provided in subdivision (e), every person
who applies for a dealer's license pursuant to Section 11701 for the
purpose of transacting sales of used vehicles on a retail or
wholesale basis only shall be required to take and successfully
complete a written examination prepared and administered by the
department before a license may be issued.  The examination shall
include, but need not be limited to, all of the following laws and
subjects:
   (1) Division 12 (commencing with Section 24000), relating to
equipment of vehicles.
   (2) Advertising.
   (3) Odometers.
   (4) Vehicle licensing and registration.
   (5) Branch locations.
   (6) Offsite sales.
   (7) Unlawful dealer activities.
   (8) Handling, completion, and disposition of departmental forms.
   (b) Prior to the first taking of an examination under subdivision
(a), every applicant shall successfully complete a preliminary
educational program of not less than four hours.  The program shall
address, but not be limited to, all of the following topics:
   (1) Chapter 2B (commencing with Section 2981) of Title 14 of Part
4 of Division 3 of the Civil Code, relating to motor vehicle sales
finance.
   (2) Motor vehicle financing.
   (3) Truth in lending.
   (4) Sales and use taxes.
   (5) Division 12 (commencing with Section 24000), relating to
equipment of vehicles.
   (6) Advertising.
   (7) Odometers.
   (8) Vehicle licensing and registration.
   (9) Branch locations.
   (10) Offsite sales.
   (11) Unlawful dealer activities.
   (12) Air pollution control requirements.
   (13) Regulations of the Bureau of Automotive Repair.
   (14) Handling, completion, and disposition of departmental forms.

   (c) (1) Except as provided in paragraph (2), every dealer who is
required to complete a written examination and an educational program
pursuant to subdivisions (a) and (b) and who is thereafter issued a
dealer's license shall every two years after issuance of that
license, successfully complete an educational program of not less
than four hours that offers instruction in the subjects listed under
subdivision (a) and the topics listed under subdivision (b) in order
to maintain or renew that license.
   (2) A dealer is not required to complete the educational program
set forth in paragraph (1) if the educational program is completed by
a managerial employee employed by the dealer.
   (d) Instruction described in subdivisions (b) and (c) may be
provided by generally accredited educational institutions, private
vocational schools, and educational programs and seminars offered by
professional societies, organizations, trade associations, and other
educational and technical programs that meet the requirements of this
section or by the department.
   (e) This section does not apply to any of the following:
   (1) An applicant for a new vehicle dealer's license or any
employee of that dealer.
   (2) A person who holds a valid license as an automobile
dismantler, an employee of that dismantler, or an applicant for an
automobile dismantler's license.
   (3) An applicant for a motorcycle only dealer's license or any
employee of that dealer.
   (4) An applicant for a trailer only dealer's license or any
employee of that dealer.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
